HR 2667: Flexible Savings Arrangements for a Healthy Robust America Act

Overview

Bill Number: HR 2667

Title: Flexible Savings Arrangements for a Healthy Robust America Act
Status: Introduced in House
Introduced: April 07, 2025

Purpose and Intent

The Flexible Savings Arrangements for a Healthy Robust America Act aims to expand access to and flexibility of health savings accounts (HSAs) and flexible spending arrangements (FSAs) for American workers and families. The bill's sponsors argue that these tax-advantaged accounts empower individuals to better manage their healthcare costs and encourage more proactive, preventative care.

Key Provisions

• Allows workers to carry over unused FSA funds from one year to the next, up to a $3,000 limit
• Increases the annual contribution limit for HSAs from $3,600 for individuals and $7,200 for families to $5,000 and $10,000 respectively
• Permits HSA funds to be used for over-the-counter medications and certain feminine hygiene products
• Enables spouses to make catch-up contributions to the same HSA account
• Extends the time period for which FSA and HSA funds can be used to cover expenses from the current 2.5 months to 12 months after the end of the plan year

Affected Parties and Impacts

The bill would primarily benefit American workers and families enrolled in employer-sponsored or individual health plans. By expanding access to and flexibility of HSAs and FSAs, the legislation aims to reduce the financial burden of healthcare costs and encourage more proactive health management. Small businesses that offer these accounts to employees could also see reduced administrative complexity and costs.

Procedural and Timeline Considerations

The Flexible Savings Arrangements for a Healthy Robust America Act was introduced in the House of Representatives on April 7, 2025. It has been referred to the House Committee on Ways and Means for further consideration. If passed by the House and Senate, and signed into law by the President, the provisions would generally take effect for plan years beginning after December 31, 2025.